Question:
Personal services are:
Personal services are:
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Exam Tip: In economics, goods are classified based on tangibility and transferability. Personal services are the opposite of material goods. The key is to remember that their benefit is consumed as they are produced and cannot be separated from the individual.
Updated On: Aug 27, 2026
- Material and transferable goods
- Non-material and non-transferable goods
- Material and non-transferable goods
- Non-material and transferable goods
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The Correct Option is B
Solution and Explanation
Step 1: Understanding the Concept:
This question tests the classification of goods in economics based on their physical nature and transferability. Personal services are a specific category that requires careful analysis.
Step 2: Analyzing Personal Services:
Personal services are activities performed by one person for the benefit of another.
Key characteristics of personal services include:
• Non-material: They are intangible. You cannot touch or store a service like a haircut or a doctor's consultation. The utility is derived from the act itself.
• Non-transferable: The benefit of a personal service is consumed simultaneously with its production and is tied to the recipient. A haircut you receive cannot be transferred to another person. The service is specific to the individual receiving it.
Step 3: Evaluating the Options:
• (A) Material and transferable: This describes tangible goods like a book or a car.
• (B) Non-material and non-transferable: This perfectly describes personal services.
• (C) Material and non-transferable: This would be a physical good that cannot be sold or given away, which is not a standard category.
• (D) Non-material and transferable: This describes intangible goods that can be transferred, like intellectual property rights or a software license, not personal services.
Step 4: Final Answer:
Personal services are non-material and non-transferable. Therefore, option (B) is correct.
This question tests the classification of goods in economics based on their physical nature and transferability. Personal services are a specific category that requires careful analysis.
Step 2: Analyzing Personal Services:
Personal services are activities performed by one person for the benefit of another.
Key characteristics of personal services include:
• Non-material: They are intangible. You cannot touch or store a service like a haircut or a doctor's consultation. The utility is derived from the act itself.
• Non-transferable: The benefit of a personal service is consumed simultaneously with its production and is tied to the recipient. A haircut you receive cannot be transferred to another person. The service is specific to the individual receiving it.
Step 3: Evaluating the Options:
• (A) Material and transferable: This describes tangible goods like a book or a car.
• (B) Non-material and non-transferable: This perfectly describes personal services.
• (C) Material and non-transferable: This would be a physical good that cannot be sold or given away, which is not a standard category.
• (D) Non-material and transferable: This describes intangible goods that can be transferred, like intellectual property rights or a software license, not personal services.
Step 4: Final Answer:
Personal services are non-material and non-transferable. Therefore, option (B) is correct.
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